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Bob Pisani reports on the trading day from the NYSE
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Bob Pisani reports on the trading day from the NYSE
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Jun.24
11:35 AM ET
Tuesday, 24 Jun 2008
Global Markets Struggle With Inflation

Stock markets around the world have been weaker recently as they struggle with the implications of global inflation. Asian markets in particular are worried; Asian currencies have been weak on inflation concerns. Consider the following headlines:

Russia: PPI up 25 percent Year Over Year (YOY)

South Korea: inflation at 7-yr high

Vietnam: inflation up 25 percent YOY

As a result, emerging market stocks have been fading:

China down 54% (from the high in October 2007)

India down 32% (from the high in January)

Russia down 7% (from the high in May)

Meantime, companies in the U.S. are emphasizing the impact of inflation on their bottom lines. Lowe's is seeing "unprecedented requests for price increases;" Dow Chemical [DOW  Loading...      ()   ] is raising prices for the second time in a month; energy costs up fourfold last 5 years.

All this is putting pressure on U.S. indices; the Dow is sitting near the 52-week closing lows from back in March.

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